Vietnam: Principles for determination and management of urban investment and development costs

Principles for determination and management of urban investment and development costs specified in Circular No. 12/2017/TT-BXD of the Ministry of Construction of Vietnam include:

- Standard costs specified in the Appendix 1 enclosed herewith may be referred to in course of determining and managing costs of formulation of urban classification project and urban development program, and relevant costs.

- Costs of formulation of urban classification project and urban development program, which are determined according to standard costs prescribed herein, shall be the basis for determining the estimate of consultancy procurement so as to serve the selection of consulting contractors as regulated by law.

- Costs of formulation of formulation of urban classification project and urban development program, which are determined according to standard costs prescribed herein, shall include direct labor cost, management cost, and other costs of performing duties, and estimated taxable income, and exclude cost of making films illustrating the reality of urban development and VAT as regulated by law.

- If the urban population scale or the number of district-level administrative divisions of a province falls into between two scales prescribed in the Appendix enclosed herewith, standard costs shall be determined by adopting an interpolation method.

- If the urban population scale or the number of district-level administrative divisions of a province is greater than the scale mentioned in this Circular, or costs of formulation of formulation of urban classification project and urban development program, which are determined according to standard costs prescribed herein, are not appropriate, cost estimates shall be made in accordance with guidance in the Appendix enclosed herewith.

View details at Circular No. 12/2017/TT-BXD of the Ministry of Construction of Vietnam, effective from February 01, 2018.

-Thao Uyen-

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